Stockholm (HedgeNordic) – Swedish asset manager Atlant Fonder has changed the fund rules for Atlant Stability to reflect the increased focus of its strategy on fixed-income investments. The changes mean that Atlant Stability, which oversees SEK 1.64 billion in assets under management, is now defined as an actively managed fixed-income fund.
“Atlant Stability was started in 2008 and initially had a management strategy that combined fixed-income management with derivative strategies,” Atlant Fonder writes in a letter. “The fund’s management has gradually changed over the years, with the focus becoming the fund’s fixed-income portfolio and derivative strategies being used as a way to streamline fixed-income management rather than as a separate part of the fund’s management strategy,” the letter continues. “Against this background, the fund company has chosen to change the fund rules so that the fund is clearly described as a fixed-income fund with a focus on the Swedish market.”
“The fund company has chosen to change the fund rules so that the fund is clearly described as a fixed-income fund with a focus on the Swedish market.”
According to the updated fund rules, Atlant Stability has to maintain at least 80 percent of its assets in transferable interest-bearing securities and money market instruments or have a corresponding exposure through derivative instruments or fund units. “The fund is already managed within the framework of the above investment restrictions and no change in the actual management of the fund or its return and risk profile is intended,” writes Atlant Fonder in the letter.
“No change in the actual management of the fund or its return and risk profile is intended.”
Atlant Stability is the second-largest largest fund in terms of assets under management within Atlant Fonder’s existing range of eight funds, accounting for about one-fourth of the firm’s assets. The fixed-income fund, previously a winner in the “Multi-Strategy” category at the Nordic Hedge Award in 2013, mainly focuses on higher-quality investment-grade bonds but may also invest in high-yield and unrated bonds. Atlant Stability strives to maintain market-neutral exposure and generate returns with a very low correlation to the Swedish stock and fixed-income markets. Launched in late 2008, Atlant Stability is enjoying its fourteenth consecutive year of positive returns.